CLP Holdings to Sell Australian Gas Plant for A$1.78 bn

Hong Kong listed CLP Holdings Limited (CLP) has agreed to sell its entire stake in the Iona gas plant in Victoria, Australia, for a cash consideration of A$1.78 billion.

Company’s Australian subsidiary EnergyAustralia’s will sell the stake to Queensland Investment Corporation (QIC), a global diversified alternative investment firm owned by the Government of the State of Queensland, CLP Holdings announced Thursday.

“We are pleased with the outcome of the transaction and the sale price, which reflects the quality of the asset and its status as an integral part of the gas supply chain,” said Richard Lancaster, CLP’s chief executive officer.

The Iona gas plant consists of a gas processing and compression plant and underground gas storage reservoirs located in Victoria, Australia. It provides gas injection, storage and withdrawal services to both the Victorian and South Australian gas markets. The storage capacity of the Iona Gas Plant is 23.5 petajoules and gas can be supplied to the market at rates of up to 500 terajoules a day.

The proceeds will go towards repaying shareholder loans extended by CLP Group to and third party debts due by EnergyAustralia, as well as meeting general capital expenditure requirements as needed under EnergyAustralia’s transformation plan.